Antonija Krizanac | David Wright Tremaine On March 7, 2024, the Oregon legislature enacted a significant change to the state’s law on retainage requirements for public and private construction projects. The new law introduces options for contractors to receive full payment of progress payments without retainage and without interest-bearing escrow accounts. Specifically, HB 4006-A (effective… Continue reading Escrow No More: A New Era for Oregon’s Construction Retainage Law in 2024
Tag: Retainage Law
Recent Statutory Changes Cap Retainage on Applicable Construction Projects
Patrick McKnight | Dispute Resolver Recent reforms to certain state retainage laws have reduced the lawful amount of withholding permitted on construction projects. In theory, retainage allows an owner to mitigate the risk of incomplete or defective work by withholding a certain portion of payment until the construction project is substantially complete. Recent statutory developments… Continue reading Recent Statutory Changes Cap Retainage on Applicable Construction Projects
Retention Reform Bill Passed in Washington for Private Construction Projects
James Yand | Miller Nash A recent Washington Bill 5528, sponsored by the Northwest Wall and Ceiling Contractors Association and the American Subcontractors Association of Washington, along with many other industry trade groups, successfully passed the Washington Legislature. The Bill will implement retainage reform to mirror the same retention limits that already exist in public… Continue reading Retention Reform Bill Passed in Washington for Private Construction Projects
Do We Still Need Retainage?
David K. Taylor | BuildSmart There have been debates for years about the pros and cons of owners withholding retainage (usually 5% or 10%, depending on each state’s retainage laws or local “industry standard”) from prime contractors. Typically, the primes will, in turn, withhold retainage from all subcontractors. However, in these crazy times, when the… Continue reading Do We Still Need Retainage?
Illinois’ New Retainage Law
James Rohlfing | Saul Ewing Arnstein & Lehr | September 3, 2019 Effective August 20, 2019, Illinois law provides that a maximum of 10 percent retainage may be withheld from payments under private construction contracts and, after the contract is one-half complete, retainage must be reduced to 5 percent and kept at 5 percent for the remainder of… Continue reading Illinois’ New Retainage Law